- PyroGenesis (PYR) has delivered four 1-MW plasma torch systems to a major international iron ore producer
- As the milestone associated with this payment has been met, a payment of approximately $2.1 million is expected within the next few weeks
- Trials of its plasma torch system with another client continue to advance
- Both clients are conducting these trials at full purchase cost to them, not as equipment loans or free trials
- Pelletization is the process in which iron ore is concentrated before shipment, reducing the cost of transportation
- PyroGenesis Canada Inc. is a high-tech company focused on the design, development, manufacture and commercialization of advanced plasma processes
- PyroGenesis Canada Inc. (PYR) opened trading at $1.21 per share
PyroGenesis (PYR) has delivered four 1-MW plasma torch systems to a major international iron ore producer.
With the completion of this delivery, the producer now has all the necessary components of the plasma torch systems on-site at one of their key integrated iron ore mining and processing locations.
Despite the ongoing supply chain challenges, the completion of these trials is expected by the end of Q2 2023.
PyroGenesis is pleased to report that the value of this contract has increased by approximately $500,000 as a result of additional modifications requested by the client during manufacturing. As the delivery milestone associated with this payment has been met, a payment of approximately $2.1 million is expected within the next few weeks.
The planned trials of its plasma torch system with another client continue to advance. The client informed PyroGenesis that, despite the Client’s own operational delays, all objectives remain the same, and the trials will be going ahead as designed.
As previously reported, the client’s trials using an active iron ore pelletization furnace will be conducted based on their own engineering, facility, and personnel readiness.
Both clients are conducting these trials at full purchase cost to them, not as equipment loans or free trials. The names of these clients – both multi-billion-dollar international producers of iron ore who are undertaking the testing of plasma torches to replace fossil fuel burners in iron ore pellet baking furnaces – have been kept confidential for competitive reasons.
“With the delivery of the four completed plasma torch systems to Client B, we now have PyroGenesis’ plasma torch systems in the hands of two of the largest, most influential companies in the global iron and steelmaking value chain,” said P. Peter Pascali, CEO and Chair of PyroGenesis.
“Both companies have made it known publicly that reducing greenhouse gases in the upstream sections of the iron and steel industry is both imperative but proven to be challenging to find areas where improvements can be made; modification of the fossil-fuel burning furnaces is one of the only areas upstream where a meaningful impact can be made. While interim measures such as natural gas or hydrogen offer a minimum improvement over diesel fuel, the limited impact on CO2 emissions dictates that these temporary measures must eventually give way to fully electric alternatives. Plasma torches – for which PyroGenesis owns the global patent for use in iron ore pelletization – provide just such a complete electric step towards these companies’ upstream decarbonization goals, hence the importance of these plasma torch trials for both clients.”
Pelletization is the process in which iron ore is concentrated before shipment, reducing the cost of transportation and providing an essential feedstock for blast furnaces. In conventional technologies, the process heat is provided by fuel oil or natural gas burners (both environmentally damaging). The combustion of fossil fuels in the burners results in the production of GHG, mainly CO2. Plasma torches, by contrast, utilize renewable electricity and offer an environmentally attractive alternative to fossil fuel burners. PyroGenesis has the process patent to replace fossil fuel burners with PyroGenesis’ clean plasma torches in the iron ore pelletization industry, thereby reducing GHG emissions.
PyroGenesis Canada Inc. is a high-tech company focused on the design, development, manufacture and commercialization of advanced plasma processes and sustainable solutions which reduce greenhouse gases (GHG) and are economically attractive alternatives to conventional “dirty” processes.
PyroGenesis Canada Inc. (PYR) opened trading at $1.21 per share.